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Problem 1: On July 1, three partners, H. Jones, Y. Read and T. Kent, decide to start up a partnership by investing $20 000 each. Record the general journal entry to establish the partnership.
Problem 2: L. Ong owns a boat rental business with $33 000 in cash and boats with a book value of $120 000. She decides to enter a partnership with B. Cooper, who has only $2 000 cash but also owns lakefront docks and land with a book value of $370 000. After some friendly negotiations, they agree that the fair market value of the boats is $105 000; the docks have a fair market value of $20 000 and the land has a fair market value of $390 000. Record the general journal entry to establish the partnership on July 1.
Financial Statement Analysis and Preparation
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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